Hope for Moray firms after High Court ruling on Covid-19 insurance claims
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MORAY businesses which were refused insurance cover during the Covid-19 lockdown could be in line for payouts following a High Court ruling.
A judgement was handed down yesterday, September 15, following a test case brought by the Financial Conduct Authority (FCA).
Thousands of policyholders across the UK were refused claims for business interruption due to coronavirus.
Many had looked to insurers to cover losses when they were forced to shut up shop – but a number of insurers said the policies did not cover the unprecedented situation.
Judges have now cleared the way for appeals, and insurance companies should now be contacting affected policyholders to resolve claims that were wrongly denied.
The insurers can appeal against the decision.
Several companies in Moray have previously contacted local Conservative MP Douglas Ross looking for help on the issue.
Mr Ross said: "This is an important ruling from the High Court that could have implications for many businesses in Moray.
"I was contacted by a number of local firms during the pandemic that were refused insurance claims.
"They were among several thousand across the UK that will have been awaiting the outcome of this test case.
"I hope this will now lead to those businesses receiving the payouts they expected at the time.
"The past six months will have been extremely challenging – without the added stress involved in fighting disputed insurance claims."
Christopher Woolard, interim chief executive of the FCA, said yesterday: "Coronavirus is causing substantial loss and distress to businesses and many are under immense financial strain to stay afloat.
"Our aim throughout this court action has been to get clarity for as wide a range of parties as possible, as quickly as possible, and today’s judgment removes a large number of those roadblocks to successful claims, as well as clarifying those that may not be successful."